We believe this statement was released to address any possible stock manipulation concerns, as it shows that actual discussions have been underway for some time now and it wasn’t simply a matter of Musk just sounding off to drive TSLA up.

Here’s the statement in its entirety:

Statement from the following members of Tesla’s Board of Directors: Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch

PALO ALTO, Calif., Aug. 08, 2018 — Last week, Elon opened a discussion with the board about taking the company private. This included discussion as to how being private could better serve Tesla’s long-term interests, and also addressed the funding for this to occur. The board has met several times over the last week and is taking the appropriate next steps to evaluate this.

So, this should put to rest any concerns over it being “fake news” that Musk is seeking to go private with Tesla.

Lastly, we should note that there’s only one thing holding Tesla back from becoming private and that’s, as Musk stated:

Only reason why this is not certain is that it’s contingent on a shareholder vote.

Elon recused himself from all votes related to SCTY, both on the board and with his shares. Elon had zero say in whether the deal was approved or not. It overwhelmingly was approved by shareholders.

““Tesla’s shareholders have overwhelmingly approved our acquisition of SolarCity. Excluding the votes of Elon and other affiliated shareholders, more than 85% of shares voted were cast in favor of the acquisition. With SolarCity’s shareholders also having approved the acquisition, the transaction will be completed in the coming days.”

If you were against it, you could have bought as many shares as you wanted and voted against the buyout. The actual shareholders disagreed with you and voted to approve. Why do you think your opinion is more important than the overwhelming vote of actual shareholders?

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6 days ago

Will

That’s true

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6 days ago

Mister G

Are you a wall street bankster? Wall street bailout beneficiaries really hate the fact that Tesla is thinking out of the box lol and refuses to be manipulated by wall street banksters that caused the GREAT RECESSION CONNECT THE DOTS ON CLEAN AIR WAKE UP co2.earth

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5 days ago

Doggydogworld

” there’s only one thing holding Tesla back from becoming private ”

That’s certainly not true. The board has discussed it, but has not yet approved anything. They’ll have to pass muster with the SEC. The funding is certainly contingent on a bunch of stuff. I doubt any of these things will hold the deal back, but all are more likely than shareholders voting it down.

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6 days ago

Ron M

The Trump supporters are the ones that are now complaining about Musk’s tweet.
How about Trump’s tweets on tariffs isn’t congress responsible for the purse strings where was the vote on tariffs. The farmers, manufacturers, and consumers many who are Trump supporters will get hurt by the Whitehouse doing Congresses job.

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6 days ago

Luke

International relations, including trade, is well within the wheelhouse of the executive branch. There are dozens of socialist and social democratic countries out there, along with every other conceivable form of government. There is only one U.S. Constitution which recognizes natural human rights as superior to those of government and has power separated into three co-equal branches. Rather than attempt to destroy the most successful civilization in human history, why don’t you haters move to a country that shares your values?

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6 days ago

SJC

The Constitution mentions NOTHING about capitalism, it does mention elections and democracy. We the People decide what economy we want.

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6 days ago

Fool Cells

Nice straw man. Where does Luke say the Constitution says anything about capitalism? But, capitalism is by far the best economic system in current day and history.

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6 days ago

SJC

No straw man, fact.

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6 days ago

Will

Winners and losers

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6 days ago

Pushmi-Pullyu

Capitalism isn’t specified in the U.S. Constitution, but it certainly is one of the premises seen in it quite clearly. Here’s a relevant quote on the subject:

“The United States Constitution’s Fifth Amendment ensuring private property rights to citizens can be viewed as a mainstay of capitalism. Private property ownership allows individuals to do what they want with their goods. That ownership allows and enables a citizen to use his property to start a business or provide a service.”

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6 days ago

SJC

China has private property and is communist, good try though.

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5 days ago

Will

Here here SJC

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6 days ago

Mark.ca

“most successful civilization in human history”
…and we wonder why other nations hate us. I hate to burst your bubble but there are definitely other more advanced countries out there. How could we ever improve if we can’t admit there are problems we need to fix in the first place?

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6 days ago

Pushmi-Pullyu

Given that far more people try to emigrate to the USA than any other country, by far, I think the assertion we are “the most successful civilization in human history” is entirely defensible… the current destructive state of hostile occupation of the White House notwithstanding.

If you think other countries are “more advanced”, then I suggest that is a case of achieving success by redefining it. 😉

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6 days ago

antrik

Redefining? When was it ever defined as “preferred emigration destination” in the first place?…

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5 days ago

Pushmi-Pullyu

When? Sometime well before 1883, when Emma Lazarus wrote the following. I take it that history isn’t your forte!

The New Colossus

Not like the brazen giant of Greek fame,
With conquering limbs astride from land to land;
Here at our sea-washed, sunset gates shall stand
A mighty woman with a torch, whose flame
Is the imprisoned lightning, and her name
Mother of Exiles. From her beacon-hand
Glows world-wide welcome; her mild eyes command
The air-bridged harbor that twin cities frame.
“Keep, ancient lands, your storied pomp!” cries she
With silent lips. “Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!”

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5 days ago

antrik

You know, in 1883, the US was a preferred destination because unlike most of the world, it still had unclaimed land… (Ignoring the natives, that is.) That was in no way a testament to success as a civilisation.

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5 days ago

Bryan

What I don’t understand is why is this an issue. Unless you are long in TSLA it doesn’t concern you. Why does anyone care, except those as stated before.
I am long and I am analyzing how I should go. Being ready to retire in a couple of years and wanting to stay invested raises some questions as to which is more important, staying invested with the added risk or selling and if you will taking the money and run. Perhaps I will split the difference.

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6 days ago

John

That makes sense.

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6 days ago

Pushmi-Pullyu

In general, it shouldn’t be an issue to anyone except those who want Tesla to fail, including TSLA stock shorters. So look at who is whining about it, and ask yourself what their motive is for wanting Tesla to fail.

But to be fair, I’m sure some TSLA “longs” are also concerned about what restrictions that will put on their investing.

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5 days ago

REXisKing

What this proves is that the SHORT CORRUPTION of the Market means the Market is a FAILED Market. Allow the Corrupt to kill companies with Lies and Smear Campaigns means smart companies go Private.

Other issues beside shareholder vote: How many of the current holders (weighted by number of shares held) would agree to hold their shares and go private. The more who want to be cashed out the more new equity investment or debt would be required. Tesla’s debt is already “junk” meaning new debt, if available, would be expensive; this is a recipe for future bankruptcy down the line. New equity investors, who knows.

My guess is that this is more likely to NOT happen than to happen. No aspersions cast on Musk and his reasons are perfectly understandable but the whole idea is a BIG reach and it would likely be easier to the raise capital needed for expansion (China, Europe) and new products as a public company. He would do well to just try to ignore the shorts IMHO.

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6 days ago

antrik

What do you mean, their debt is “junk”? I hope you are not confused by the fact that they issued “junk bonds” recently, which in fact indicates they got *easier* access to funding (without requiring the usual securities to back it)…

They claim they don’t actually have need to raise further capital for their expansion — except for local loans for the China Gigafactory, which should not be affected at all by them being public or private. (Nor should actually most other funding venues be affected, I believe?…)

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5 days ago

Kind a Wierd

You’re financially ignorant – you have no concept of what the bond market is, how it operates, or how the market rates a company’s credit. Tesla debt is rated B3 by Moody’s, making it junk.

You’ve exposed your financial ignorance over and over again, whether it be what “junk” means, or how securities law works.

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5 days ago

antrik

Thanks for another ad hominem. That’s clearly your forte.

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5 days ago

Kind A Wierd

I mean, I can’t tell if you’re trolling, or if you’re really this gormless. Pointing out that you’re clearly financially illiterate after you make a statement that proves that to be the case isn’t an ad hominem; I’m not attacking some unrelated aspect of you personally to discredit your argument, I’m stating – correctly – that your claim is factually inaccurate . There’s no “confusion” about the quality of Tesla’s issued debt nor its family rating – both are rated as junk by the two most trusted debt analyst agencies. You clearly don’t understand what you’re talking about, and I’d love to hear you explain how junk debt “in fact indicates they got *easier* access to funding (without requiring the usual securities to back it),” when reality is the exact opposite. I mean, I just can’t…junk debt is “easier” to access, and doesn’t require normal securitization? LOLOLOL – you’re totally financially illiterate, and apparently not that bright, either.

You’re out of your depth, dude – you’re just like every other religious zealot, running on faith and not much else.

Ignoramus! Issuing junk bonds means to issue bonds that are graded as junk – I.e. high-risk. Hence you pay more interest, and that is the OPPOSITE of “easier access to finance”.

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5 days ago

antrik

I guess I could have worded that better. My point is that Tesla doesn’t seem to have trouble finding eager investors *despite* that fact that their debt is considered high-risk. No need for name-calling.

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4 days ago

Pushmi-Pullyu

“So, this should put to rest any concerns over it being ‘fake news’ that Musk is seeking to go private with Tesla.”

It certainly won’t put to rest the fake “concerns” of the concern trolls among Tesla Death Cultists. As always, they will ignore the facts and keep posting their FUD.

Privatization, and the end of anti-Tesla FUD motivated by short-selling Tesla’s stock, can’t come soon enough for me!

I realize that not all Tesla Death Cult FUD is motivated by short-selling; some of it is shilling for Big Oil, or gear-heads who hate Tesla because it represents the swiftly approaching obsolescence of the gasmobile. But an end to Tesla short-selling will sharply reduce the volume of Tesla Death Cult FUD, that’s for sure!

BWAHAHAHAHAHA! He does it to himself, and he does it intentionally. This is how you know he’s a pathological megalomaniacal narcissist – only such people engage in behavior they know to be destructive, but do it anyway just to draw attention or make an argument.

Imagine how much better Tesla would be doing if he’d just shut up and do his job like a normal person. Kind of reminds me of another pathologically meglomaniacal narcisit, but I can’t remeber…oh, Trump. He reminds me of Trump.

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5 days ago

antrik

As you know full well, the mere fact that there is an investigation, doesn’t mean they will actually find misconduct.

And it’s your personal opinion, not a confirmed fact, that his behaviour, on the whole, is destructive…

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5 days ago

Kind a Wierd

I thought you said yesterday that there wasn’t going to be an investigation? Remeber how you knew better than the former head of the SEC who said that Musk had probably crossed the line and was going to have to prove his claims? Which firm was it you practice securities law for again?

I didn’t say anything like that. If you are attacking so many people that you can’t even tell them apart any more, that’s your problem, not mine.

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5 days ago

Pushmi-Pullyu

Gosh, I’m going to miss you and your only “kind of weird” — but highly obsessive — Tesla Death Cult FUD posts.

NOT!!

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5 days ago

Kind a Wierd

I don’t practice securities law, but I have a reason to understand it, and I clearly understand it better than you do, as does the SEC, which now has Musk under investigation – something just yesterday you claimed would never happen. Wrong again, my word salad friend.

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5 days ago

Hart Ed

Based on how this day has ended, I think you need to pull back. Musk is trying to grow the company at a very fast pace, and rapid growth eats cash, typically leaving no room for profits. This business rule is very hard to change.

But, there is no question that Musk is upset with what the shorts are trying to do to Tesla, and I am sure that going private with the stock at a high price brings him great satisfaction, as he knows what it does to the shorts. Tesla has a mission to change the world for the better. The shorters have a mission to suck whatever they can from the company, then leave it lifeless on the side of the road. The shorts have NEVER created value.